. MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 07 direct labor hour at a rate of $17 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour Budgeted foed overhead is $12,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's direct materials requirement. At the end of August the company had 4,680 pounds of direct materials in inventory. The company's production budget reports the following Production Budget September October Units to produce November 5.100 7.100 6,600 (1) Prepare direct materials budgets for September and October (2) Prepare direct labor budgets for September and October (3) Prepare factory overhead budgets for September and October Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. MCO Leather Direct Materials Budget September 5.100 3 15,300 October 7.100 3 21,300 Units to produce Materials required per unit (pounds) Materials needed for production (pounds) Add Desired onding materials inventory (pounds) Total materials required (pounds) Less Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases 15 300 21 300 $ $ 15,300 45 61,200 $ 21,300 4 85.200 V Required 2 >